Why Car Dealerships Refuse To LOWER PRICES

[@wd8085]

I hope they don't lower prices and eventually go out of business. Then we can buy direct and save 10k to 40k off these insance prices.

[@SilverSidedSquirrel]

WHAT makes you think the manufacturers will be bright enough to lower prices?

[@OneOut1]

The manufacture is the one that raised new car prices 25% over the past 3 years.

[@marcusstanton7750]

The profit margin is not that much

[@Eugenepanels]

It’s on purpose. Biden admin is threatening the car industry and making prices higher

[@appleseed8375]

Good wish won't happen. The manufacturers will keep the prices almost as high. Seen it in other construction trades. Run local supply houses out of business get people to use on line dealers then raise prices. Choices limited we are still rolled over the barrel.

[@crocketteerden6240]

I really believe a dealership would go belly-up rather than lower prices to help a customer out.

[@gerardhesse6959]

It’s not their job to help someone out. It’s not our job to bail them out for making bad decisions.

[@beloved-child]

They rather lose all inventory in bankruptcy then sell at a fair market price.

[@leos3003]

Who care where they go and what happens to them. We still get the cars when they go belly up for a huge discount and the more they pop the lower the prices go.

[@crocketteerden6240]

@@beloved-child I know an auctioneer who said a dealer would lose money to another dealer than lower his price and make some money from the public.

[@beloved-child]

@@crocketteerden6240 exactly. Going against your own business interests to spite customers, the very group you desperately want to attract to SURVIVE. it bewilders me

[@keithbrigman5179]

Would love to have a new truck but I’m afraid these auto makers have priced me out sad day for a lot of Americans

[@Wizeguy74]

Even used trucks are insane. 5 year old tundra with 100,000 miles and they are asking msrp. It's nuts.

[@Invisible1900]

What would be the price that would make you buy a new truck? I'm in the same boat as you. Still debating if I should buy now or wait

[@keithbrigman5179]

I’m not sure what price would bring me back.l would like to see people stop buying these crazy over priced vehicles put the car manufacturers in the same boat as they had us in for four years(screwed). I’m waiting for tax return season to end to start looking at the used truck market although it’s not much better than the new truck market

[@imabebebebe2496]

@@keithbrigman5179 why don't you buy a car instead, American.

[@keithbrigman5179]

I don’t have a problem with cars but I’m a farmer and a truck is a tool I need

[@boba.4316]

Two years ago I walked away from the marked up truck MSRP's. I then purchased a beautifully restored '72 Chevy C-10 with a 350 and 5speed on the floor with overdrive. Easy to work on myself. No confusing and expensive electronics. So far nothing but the 3k mile oil changes. A flawless ride for $18,000. A true workhorse.

[@bellms]

Nice!

[@chetmyers7041]

If a teenager crashes into you and totals the truck, what will their insurance declare your ACV actual cash value is? Do you have a special insurance policy?

[@bobstribulations8578]

It’s insured through Haggerty. An antique vehicle policy. You have an agreed amount written in the policy in case of theft or totaled.

[@andrewrogers2313]

👍👍👍👍👍

[@cadman9615]

Not to mention banks won’t lend money to consumers for a truck that’s 20-30k over priced. And ppl don’t wanna borrow at the current rates. Formula for disaster

[@JM-er2yl]

Husband has a paid off 2015 Silverado 1500 with 76,000 miles. He checked into the cost of a 2500 truck and decided to keep his current ride. Dealers need to learn the hard lesson they can't continue to price gouge consumers indefinitely.

[@chfpontiac5849]

I'm in the same boat as your husband with an 18 F150. Trailering a 7000# camper and now snow plowing my driveway with it. The 250/2500 is obviously the better choice but at these prices since the shortage, I'll just go easy on it and hope it survives til I can afford the bigger truck!

[@LauraMagyar-e8f]

The dealers now hosted on their own petards as well as exposing all of their weakness, fake fees and market adjustment garbage. More Americans than ever have learned from CQA, CarEdge and a handful of other KZbin posters just how greedy dealers really are. Knowledge is power.

[@carlosnieves3291]

I remember when higher end truck packages ranged roughly $50k to $60k, now base packages are there. Its crazy

[@TATERNUTS1]

I unfortunately had my old truck die in May last year so I had no choice but to get a new used one. I paid 27,400 cash for my new one and it's prob only worth 22k now. It's hard to stomach a 5k loss in value in 6 months but I own it outright so luckily I don't have negative equity like most people now. Car markets crazy now

[@brianwashere7966]

Not lowering prices in favor of paying $500 a month in floor plan interest for a vehicle THAT WILL NEVER SELL AT THAT PRICE is a GREAT strategy for going bankrupt. When these vehicles have been on your plan for 400+ days get a clue. Lower prices or they'll be there another 400 days. Open your eyes, realize the reality on the ground. Take your lumps and survive.....Otherwise go out of business because that is where you're heading.

[@banzaii6285]

Yep....slow motion bankruptcy....prolonging the inevitable.

[@SilverSidedSquirrel]

ooooooooor cry to the govt and get ANOTHER BAIL OUT

[@Bob_Weir617]

We will just bail them out again after they fail due to greed! Then our taxes will go through the roof even more than they are now. Maybe all the illegals they are letting in can buy some new cars on our dime😂

[@ironcrafter]

This is the way. Smh@@SilverSidedSquirrel

[@mdh157]

eventually the interest on the floor plans will catch up to them.

[@dwhite6213]

You seem like a unicorn; an honest used car dealer. In another year our granddaughter will be needing a car. We might just come up to NC from Georgia to see what you have.

[@bobfox2733]

I seen videos about corrupt dealers in NC

[@NChillbilly]

I just wish I knew where his lot is. I respect he keeps it secret though when he could be trying to market his business on here.

[@jerryding6190]

I agree. Toyota Tundras are like F-150s, i have seen many 23 tundras are still on the lot (aged 6-9months), and no price drop at all.

[@ThomasjeffersonIII]

@@stevenj421They aren’t better. They are still turbo charged junk. Like everything else nowadays.

[@joepeterssr3822]

2.17.24. This man is spot on target. I am waiting . THE PRICES WILL COME DOWN MORE WHEN THE DEALERS ARE SQUEEZED MORE. SAVE THIS AND WAIT . JOE PETERS

[@anthonygarland933]

Dealerships have the absolute right to choose what stump to die on. R.I.P

[@jsd354]

It’s hard to make less profit after you’re fat and have lost your edge. Sad really. It happens that way with a lot of businesses. The owners and managers will eventually face the reality or their replacements will.

[@dwighterickson6121]

Fat, happy, lost their edge Nailed it!

[@jonathantaylor6926]

The empty dealer lots were a nice buffer for the entire car business to hang on to high prices while sales slowed. But the dealer lots are full. Maybe some summer sales coming.

[@vardashan]

Can confirm on the used side as well. I am trying to buy a large 3 row used SUV for my wife. We need one having 4 older kids + dog and we travel 8-10 hours for week+ visits to see relatives. While dealers lower prices over time (can see price history on car search engines) they refuse to negotiate with an actual buyer. They refuse even when I tell them I will buy it today. Wife's SUV has 234k mi, is totaled from hail damage and now needs major engine work so we cannot even drive it anymore. Literally the best offer I got from talking to these used dealers was to lower a 46k suv by $265 which was immediately negated by their "dealer fee".

[@70newlife]

Change the engine it wouldn't cost more than a new car. You could ride it out for next two to three years.

[@KenEilers]

I paid 62k for a new 22 F150 Lariat after waiting 6 months to get it, the same truck today for a 2023 is 76k. Just crazy price increases is what is killing the sales of new vehicles, IMO. Not sure I will ever be able to buy another new truck

[@SmittyAZ]

Was 62K a good deal at the time, or were the YT experts saying it was too much?

[@KenEilers]

@@SmittyAZ It was 2k below MSRP. I needed a new truck so I got it.

[@OtisFlint]

@@KenEilers In 2022 you would have paid more for a low milage used truck so you did fine on that deal.

[@KenEilers]

@@stevenj421 F250s seem to be in higher demand than F150s in my area.

[@robedmund9948]

And the waiting game continues. Thank God for spare parts, the cash to buy them, and for PATIENCE! Most Americans can out wait the dealers.

[@markrichards4042]

Just inherited from my mom a 2018 Camry SE with 20k miles. Garage kept, rarely used last 3 years. All maintenance done and I detailed it bigtime. Have been driving it here and there and have had complete strangers ask me if I want to sell it. Talked to a few of them. Same story, dealer garbage and don't have many used cars that are nice that aren't ungodly overpriced. She paid 23k back then brand new. One dude said he would give me 22k. Pretty lousy out there.

[@VMATT500C]

$ 100,000+ markups could be part of the dealers problem.

[@allenhanks7719]

The service department pays for all operations. Payroll, expenses,floor plans,building, utilities,taxes,owners trip to Hawaii, etc. sales are for fun.

[@RoadHouseeee]

I’ve worked in a service department for 11 years. This is 100% accurate

[@mrrogers4591]

Manufacturers purposely design cars now that need to be serviced by dealership.

[@BobSmith-zv9mi]

Was going to buy a new Chevy truck for my retirement. After looking at these crazy prices I seen a 1996 Chevy Silverado for sale on the side of the road for sale. Ended up buying a cherry 96 Silverado for 10,000 cash. I’m very happy Indid not buy that new one. A lot of nice old vehicles in north carolina

[@plottingurdemise9266]

That’s a crazy price for a 28 year old vehicle that’s not a collectors car

[@BobSmith-zv9mi]

@@plottingurdemise9266 1996 with no rust and 77,000 worth every penny

[@chfpontiac5849]

$10,000 for a 28 year old truck??? Wow. You aren't very bright.

[@BobSmith-zv9mi]

You have no idea what obs truck is worth. People with no knowledge make me laugh @@chfpontiac5849

[@OtisFlint]

@@chfpontiac5849 He said the truck was cherry, anything under $10k here is a complete rot box. I wish i could get a cherry truck for $10k in the north, age wouldn't matter much if it was in great shape.

[@TomConklin]

Our refund is going toward house projects. We’re gonna run the wheels off the vehicles we own outright…

[@Riverguide33]

It will take financial-desperation to reset pricing at dealers. We still have a way to go. 👍

[@jimsmithnyny8905]

One major problem with dealers is that they think cars are similar to houses real estate and cars appreciate in value, and that cars have equity in them😂😂.

[@jimsmithnyny8905]

One major problem with dealers is that they think cars are similar to houses real estate and cars appreciate in value, and that cars have equity in them😂😂

[@dougcox2537]

The dealerships shouldn't be the ones dropping these big prices. It's the manufacturers that is marking these prices up. Having a relative who worked in a factory in management and knowing what it cost to build they made. $60,000.00 - 70,000.00 and up cost less than $20,000.00 to build. This is nothing but Greed!! I have friend who has a friend that is in management at the Corvette plant. In 2019 he told me that his friend would not tell him the cost to build them, but he told him "You Can Take The MRSP On Any Corvette and CUT IN HALF And they would still make money" My friend told me this to my face.

[@dougcox2537]

@@donm8633 I actually saw this for myself once in 1986 on a truck that I bought. The owner of the company mess up and left his book full of vehicles on his desk and got called of his office for about 10 minutes. It was the next page over. His invoice for the truck.

[@Wickedpissah138]

The reality… losing money now or losing less in a bankruptcy filing. They are waiting for it.

[@davidcruz4832]

Thanks for sharing this info. I hope the dealership starts offering 10 to 20 % off the MSRP. I am holding on to my tax check. Leaving it in the bank. The dealers can prevent going out of business if they just lower their prices and get their vehicles out of the lot and stop ripping people off.

[@martykong3592]

:) THANKS MUCH for sharing! Prices are STILL to High for many of us :( ALL the BEST! ! Cheers :)

[@maverick-zj3jz]

I'm glad u being honest about it, none of the new or used car dealers here will lower prices or negotiate a price. They still have dealer mark ups on bronco, super duty, and mustangs.

[@paulneville3960]

Just wait

[@653j521]

@@paulneville3960 Or even, gasp, buy something else.

[@390WagonMaster]

RV dealers are doing the same....

[@douglaswilliams5794]

Made two midpoint price range cash offers to dealers. No sale on both. Later went by both places and no foot traffic onsite.

[@pokeysomers9885]

Got a 05 Colorado! Blowed away at the price of a used Tacoma!!!! So put 2000 into repairs on mine! & Pray it will be good for a while now!!

[@JA-zh5xi]

It’s never been easier to skip the dealer and buy directly from a private seller. Bad dealers will figure that out one way or another.

[@ft9kop]

Yes but it's difficult to get financing for a private sale, esp for high mileage or older cars

[@donm8633]

They already know, but they are narcissistic

[@tommorgan1291]

Yes but! But I just came from walking around our local Toyota Dealer's lot looking at window stickers. What did I see? Factory loaded add ons and Dealer add ons. Also the add ons were price beyond reasonable! This scheme is outside floor plan costs and could have been avoided. There are two reasons they are not lowering prices in my humble opinion. One incompetence and two, GREED.

[@edjarrett3164]

It will take a lot of dealerships going out of business before the OEMs and their shareholders wake up to the affordability crisis. It’s crazy the OEMs can think they will rake in profits with lower numbers and a shrinking buying public. The business models will soon fail, it’s not if just when.

[@ababbit7461]

My choice was to trade-in my "2nd" car for an upgrade. I still have my "Main" car that I feel will last a lot longer. So, my choice was to trade-in my 2nd car for an upgrade OR fix it. I chose to fix my 2nd car and save about $10,000 over buying an upgrade. Good luck this tax season, I put my tax money into fixing my 2nd car... It will now be 3 years before I look at another car to replace my 2nd car, which is my "back up" vehicle that I use sparingly (higher mileage is why it is my 2nd car now).

[@darinbrazil5496]

In a down market a seller must go well below what they in their mind think is a fair price. Only then will inventory move and then at that point they could slowly raise the prices again. This happens in all market corrections.

[@josephfbuck]

The other day you made a very important comment about Vehicles needing to be moving around so they didn't have things like the catalytic converter clogging up you are the first I've ever heard made that statement and I feel that's what happened to my car I am replacing my catalytic converters I did find them online cheaper than the local shop the local shop wanted to charge me $1,500 for the Parts Plus another thousand to put it in guess what online I got all my parts for under $300 I'm just waiting to put them on very satisfied of what I got but getting back to your comment you were the first KZbinr that's ever mentioned things like this happening to a car just by sitting I say thank you it explains a lot of things

[@colbiecolbie6979]

Here in Ontario Canada there is a Ram dealer offering 30 percent off 2023 trucks. He has 67 in stock. I did some comparisons 26 k cheaper than a comparable ford

[@silkemueller1391]

which one?

[@Letsgo44444]

In Canada prices are already so much higher than they should be.

[@ThomasjeffersonIII]

Not in my area of PA, there’s a dealership near me that still has 22 and 23 models sitting there with marked up prices.

[@Starship007]

No need to go to dealerships and spend the whole day negotiating. Shop online for best deal whether in your city, state or any other state. They will ship the car to you. Just sit at home and relax. If the vehicle in your city, have them fill out 99% of paperwork before you arrive. Email pic of license and auto insurance if need be. In/out in Les than 30 minutes.

[@InternetUser._]

You can get a whole used car for $5,500. Or you can pay $5,500 in taxes on a new car, that drops 5k in value on your drive home from the lot 😂

[@TheRoyalautogroup]

Your not getting much for $5500

[@InternetUser._]

@@TheRoyalautogroup You can get plenty if you buy private sale and you have the balls to negotiate.

[@bernieglass8098]

Depends on your standards. If you live above your means than that wouldn't be good enough. ​@@TheRoyalautogroup

[@Floorguy1985]

Used cars you don't have a warranty and you could be buying a car that may fall apart. Pretty expensive to put in a new transmission these days. Small repairs can be more than $2000 today

[@jessekuchinski1172]

And all that money to look like sucker lol

[@stevehenderson2571]

You hit it when you said the dealers priced themselves out of sales. I’ve owned 2 GMC Sierra Quad Cabs since 1994. Bought them new. I chkd a similar Sierra and it was priced 64,800. + + + …. I told them they were on drugs and walked. Friend has a Honda Ridgeline V6 AWD pretty much loaded. It tows a bass boat. That’s what I need. $41,686 OTD. No trade. And my local GMC dealer is still bugging me to buy new Sierra.

[@youtubedelusions6519]

I noticed a 2020 Honda Fit that the dealer wants $19,500 for. So I looked up what it sold for back in 2020...it sold for $20,500. Then I went to Edmunds and plugged in the VIN # and they said it has a trade in value of $12,500...so they are marking it up $7000.

[@drusilla3882]

I bought my 2008 Honda Civic back in 2016 for $7000...I looked up the trade-in value on 3 different sites and they hovered around $6000 - $7000. So my car would sell for more than I paid for it EIGHT YEARS AGO.

[@OtisFlint]

They probably paid $18k for it last year, lol

[@Starship007]

So hard to find a new base priced vehicle, many fully optioned

[@jsd354]

Also, as I’m listening to the logic for the Ford dealer desire to push high end, large margin vehicles instead of the Maverick (your words not mine) I’m reminded of how Detroit lost their business and invited Datsun, Toyota and VW to take away their market in the 70’s and 80’s when they couldn’t build small more fuel efficient vehicles people wanted and the ones they built were crap. Tell Detroit it’s a lot easier to listen to the customers wants and build to fill those wants than loose your business to the competition, realize your mistake, then try to go out and get that business back.

[@sealedindictment]

“remember to big to fail” that wasn’t just for banks

[@FuckKamalaHarris]

Detroit has been owned by the greedy UAW for decades. They dont give a shit about consumers (even though they should, since we keep them in business). All they care about is what demands they’ll make on their next union contract. They even got the big 3 between a rock and a hard place.

[@ScottishTerrorsInLA]

VW now pushes their SUVs. In the past few years I ask about Jettas and they say no one wants cars, the market only wants SUVs. Do people actually want them or do the dealers just push that narrative to try to sell higher margin stuff?

[@Windstorm7x7-wl8ko]

Americans after 1945 paid for the bribe that broke the USSR. Part of that was to allow imports from every nation willing to align with U.S. interest. That's the current narrative. Did big business in the U.S. profit from that arrangement? Well if they had sunk more into R/D and design they probably would've saved everyone money in the long run. The change in how the stock market worked helped scuttle any possibility of that, but leaders without vision played a hand.

[@robedmund9948]

I don't like the new Tundra's looks, but for the quality and longevity I'll have to just suck it up and deal with it.

[@gusdavos8158]

Been looking at a Silverado zr2. The dealer still wanted to put add ons. Lol. Didn’t even respond to his offer.

[@jburch1544]

Just saw TV commercial for local Ford dealer claiming F150 lightning for 48k. Still don't want one.

[@Armmani2000]

How do people buy a car with tax return money? How much tax return do they get? I barely get $200 and we pay 13% tax here in Canada.

[@Floorguy1985]

I think it's more about winter being over and warmer weather . Who wants to shop for a car at minus 10 degrees.

[@jasondavis1502]

When car lots default, banks sell their inventory without reserve.

[@Pacecar93]

That's their problem, not mine. When I have a high "floor plan", I have to stop spending frivolously and get my finances back in line. That sometimes means that I have to take a loss now, to get my head above water in the nearer future.

[@samuelscragg7052]

The ford dealership in our town have cars and trucks all over the place. The EV are lined up out front like people want them 😂 . The ford dealership in our town is just one of their stores there are about 4 of them in a 75 mile area. They been in business for over 50 years. I’m really curious how they come out of this recession period. I’m noticing that one of the big grocery stores in our area is not very busy on Saturday like they were in the past. Inflation has really hit people really hard in our area.

[@obxmay]

Will be interesting to see how old the average car registered in the U.S. will be in a few years. People like me are holding on to their current rides and simply keeping up with repairs and maintenance. Looks like my '13 Accord will be sticking around for many more years as I'll be damned if I'm playing their ripoff game. Sorry new car dealers but my bottom line is more important than yours.

[@dougsheldon5560]

Better a haircut than a decapitation don't you think?

[@jimsmithnyny8905]

One major problem with dealers is that they think cars are similar to houses real estate and cars appreciate in value, and that cars have equity in them😂😂

[@jerryanderson3181]

Excellent presentation as always thanks so so much for your honesty such a rare thing now days

[@Capt.Tony00]

The dealerships should just tell the manufacturer that they want to send all the inventory back to the manufacturer because they can’t sell them for what they owe. Let the manufacturer deal with it. The dealership is not independent of the manufacturer. If the dealer can’t sell then the manufacturer can’t sell

[@ThomasjeffersonIII]

That’s true in some cases, Toyotas ceo wasn’t very happy about the mark ups at dealerships. I can see a direct relationship between manufacturers and consumers in the future, cut out the middle man.

[@MrsBStacyBattleBorn]

If inventory isn't selling and they are not lowering prices to generate cash flow, the dealerships are setting themselves up for bankruptcy, where they will have to sell the vehicles for less that MSRP. Manufacturers raised MSRP knowing they were creating a price increase for the end users. Financial institutions backout of lending to car buyers, or raised interest rates on vehicles loans, forcing buyers to come up with more cash down, and insurance companies raised insurance rates causing more cash to come out of an end users pocket. In the end it is almost guaranteed that the banks will end up with most of these cars and the dealerships and car buyers will end up suffering all the losses. If you don't see the pattern created is the same as the pattern they used in 2000s to revap the housing market to make it more beneficial for investors and financial institutions, then dealerships will not do what they need to do to cut their losses and run. They will go down with the sinking ship. They are consolidating the car market and they do this by getting rid of the smaller dealership first and leaving the big dealerships that they can control, and that have already bought in to all electric future idea. Getting rid of most of the dealerships means the end users will have to buy from the bigger dealerships that are left. Most people will not be able to afford the vehicles of the future meaning there will be less cars on the road just like they wanted. They did this in the 80s and 90s with grocery stores. Today few franchises and Amazon have a lock on the food supply.

[@Starship007]

Every car has an internet price and floor price. They can not tell you internet price if you ask at showroom. If you have internet price you go directly to fleet sales. Many dealerships selling more internet priced vehicles and shipped to other states if need be.

[@PC-cs5wp]

When you sell A NEW CAR you MUST pay it off to the bank!!!! Some of these dealers are starting to have problems doing this. When you sell it for 10k loss you have to take that cash out of your pocket!

[@IKnewMickey]

Dealers are filthy rich. 3 dealers in my town own 100's of properties, strip clubs retail locations and mile after mile of farmland. They own triple A sports teams and huge manisions. They don't drive the makes and models they sell. They drive high end German cars while they over priced Rams and Chevys. If you're remotely concerned for rich dealers loosing a million or two to get over this hump your concern is mislplaced. They've been pillaging for decades.

[@SilverSidedSquirrel]

No, you all get together and cry to the govt about how you are "TooBigTo FaIL" and then the taxpayers bail you out and you keep on making things worse.

[@full-timepreacherminister2371]

Thanks!

[@CQALive]

Wow! Thank you so much!!!

[@ajwright8710]

Looks like a perfect storm in the Auto industry 😮

[@IKnewMickey]

Mr Brandon I read that tax refunds are down 29% this year. I have no idea why.

[@wheeeeeha]

Americans have to pay for the "immigrants".

[@jamessouthworth1699]

Mine is the lowest it's been in 10 years

[@davidolson7575]

Is it true that Ford handles the floor plans for Ford dealerships rather than a third party?

[@mortallobster897]

Legislation needs to be changed to allow direct sales from the factory.

[@batsonelectronics]

do you even understand why dealers exist ? The tax and paperwork requirements for a dealer to exist is 100x for just a maker to exist.

[@JustLiberty-h6y]

@@batsonelectronics The paperwork to register a car takes an hour. The taxes can be paid by anyone. The Manufacturers could easily take on this work. It could all be done on-line. The prohibition on direct sales is a holdover from aggressive new-deal anti-large corporation sentiments and lobbying. It is anti-consumer, counterproductive, and harms especially low-income families.

[@batsonelectronics]

@@JustLiberty-h6y so what you are saying is , you really don't know what it takes to be a dealer and sell cars. it is a lot more than that, involving licenses and years of record keeping, verifying insurance, paying taxes, and several others. All the stuff YOU would have to go thru to be a dealer, is everything they have to go thru, times 48 or 50. They would also loose the licensing rights they have now, all these dealerships pay monthly to have those Brand names.

[@coryvb3056]

Agree, purchased my car online in 22 and had no problems at all here in NC.

[@williamoverbay1321]

I hear what your saying... the big thing that gets me though, is they charged inflated prices for cars some more than 10k over msrp for their cars since 2020. They rode the market pricing most people out of the market. Now that the market is dropping, they have to take the hit just like the consumer did for the past 3 years. They got those big sales and now they are going to have a rough year. I hope they saved some of that money..

[@1384THAVE]

On the used side, the indys and UCMs at the new dealers are sitting on high priced inventory coupled with low supply and I imagine are quoting even higher interest rates than the new car side - thus a parking lot. New car dealers have to contend with their holdback cost per unit but also monthly mfg incentives as cited. Until the new dealers feel the pain from their floorplan costs (or payroll/cashflow needs for the whole shop) they have no incentive to return to realistic pricing. This will get worse before it gets better (which is likely never).

[@jameelhudson8558]

Simple fix what u got.Then let the dealership and the auto maker work it out don’t let the people pay the price.

[@travisogden2121]

Is it possible the OEMs are subsidizing dealerships to reduce their burden of flooring costs so the OEMs can keep their wholesale prices high to maintain expected sales and earnings? This would satisfy their public market investors and drive up their stock price (as we’ve seen with Stellantis recently). Maybe a lot of off balance sheet stuff going on?

[@donm8633]

Yeah they probably own all the aftermarket parts stores. Like corruption. Cook the books.

[@stevenveltrie1868]

Really enjoy your insight on the car market.

[@mjc8248]

I bought a new Kona Limited instead of another new kia soul because the kona wasn't much more expensive than a supposedly cheaper soul. The kona had so many more features for a few grand more. As a cash buyer it just made more sense in the end. I looked used also but used cars were just too expensive for being used cars.

[@maxwedge3537]

I follow the car market a lot, and I am in the market for a AWD panel van. None of the car sales channels ever addresses ‘commercial’ style vans. When would be a good time to pick up a lightly used AWD panel van? Or do they not deal on those because of the commercial market?

[@soundmind192]

Sure I think there will be a short spike in tax season. Mostly in used cars I would think. Most people are not putting the bulk of any tax refunds in a car purchase. Many are behind in bills and housing. They have to keep the many hungry wolves from biting.

[@davejarvis5139]

Dealers are needed. I like the selection and jobs they bring. Of course I don’t like paying the prices they want. I wish they could find a happy compromise to keep businesses open and offer a good value. Bad dealers ruin it for honest businesses. Many many will lose jobs before this works its way out.

[@OtisFlint]

They're not needed at all. Buying a Tesla is so much better than buying from any other automaker.

[@Lakeman3211]

I’ve seen that all over, so I wait!

[@jeffnoob8448]

Nothing is going down in price right now , wake up, folks. Thinking cars will go down in price while bread and eggs continue to rise is kinda crazy imo

[@JA-zh5xi]

That’s not correct. People need food. They don’t need new cars.

[@solvend]

Bread and eggs have been falling here steadily for months. Maybe move?

[@anonanon1604]

people did finally wake up, and stopped buying shit they can't afford, directly because everything they actually need got more expensive.

[@jonathantaylor6926]

You need to take into account leverage. People mostly don’t borrow money for food. But the majority of cars are financed. Also in recession people will give up a car before they give up food.

[@obsidyan2000]

FACTS!!!!!!!

[@craigk7615]

I buy used 3-6 years old except one year when I bought for cash with a big discount.

[@timothyp3378]

Inflation is instant due to profit taking but deflation or falling prices are sticky due to making a loss real….kick the can down the road is typically easier while the manager looks for a new job……

[@OscarHendzCano]

I don’t feel bad for those dealers don’t even a bit

[@robertclubs9908]

Thanks for the update.

[@CharlesCurran-m9p]

So they refuse to sell at a big loss but would rather keep taking a series of incremental small losses until forced to take a massive loss?

[@donm8633]

It's like playing the lottery, every week spend money on tickets. It adds up and you never win.

[@miked3842]

You remember the old saying Mopar no car.

[@Ronald-dc6me]

I'm in Texas,and I've seen two tot the note lots close with the cars still sitting in the lot ,what does that mean please answer with your opion

[@GreatBeyond74]

dry rot is real. Plus those farted on seats aren't getting any fresher

[@nicolekeenan6531]

Anytime I fart on my seats, I just go buy a fresh bottle of Febreze-much cheaper than a car payment. My Buick is hitting 260,000 miles and keeps on keepin' on.

[@Shalmaneser1]

Banks & dealerships are playing chicken with the Prime lending rate.

[@richardlaing8536]

So what’s the solution for us we can’t afford new or used vehicles. You have explained the problem on high prices as a consumer tell us what we can do?

[@DranksandGrub]

Just was in the market for a new or used Durango and after going to multiple dealers in IA and IL theres no way these dealers listen to the market cause they literally thought i was crazy enough to agree to a $401 note on a 2015 RT with a 137k miles with 10k down and another wouldn't come down on the markup cause he said the Hemis are going extinct so they will get what they want for it is my lose meanwhile he gave me a dirty look when i said well from the large amount of inventory one thing you ain't got to worry about is running out but might want to think about bankruptcy if you keep thinking this is 2022😂

[@england641]

I almost bought a 24 Subaru Outback on Monday. But as soon as I saw the APR rate I was like wow no thank you and walk away. They wanted 10% APR. I was trading in my car and they really wanted me to buy a Subaru. The entire negotiation process they held my keys and tried selling me a lower trim outback but still wanted 10% APR. I know for a fact they have entire lot overflowing full of cars. I seen the lots with my own eyes. These cars full of spider webs

[@elizabethoboril938]

The few different models Ive been interested in have many listed at MSRP or lower because they're sitting for months. Oh well! I still see a lot with high mark ups and these dealers are insane to think people will pay those prices. Finance rates are declining at a snails pace as well.

[@sampsonramm6630]

Here in Ontario Canada, Dodge is offering 10k below msrp on some of their trucks and GM is now starting to offer cuts to interest rates and one dealer is offering 15k off certain models. Even used car dealers are starting to cut prices...

[@ChrisHale-q3o]

Great content! Thank you!

[@mferraz2050]

The OEMs also cut the dealers holdback, even in these crazy high price vehicles. Insane

[@Ultralightaman]

MSRP is in response to dealer markup. They felt left out of the huge profits. But now time is over and all involved need to get back to reality. With inflation all around cars are even less affordable than before the pandemic.

[@robertott2631]

I work at Dana in Toledo and all the axles we make go to Jeep and we’re working 7 days a week, Jeep is building vehicles like they can’t keep them on the lots which is not what’s going on., so what gives.,?? Why are they not slowing down but working OT and Weekends.,?? I don’t get it with their prices and to much inventory.? Maybe they just crush them after 3 years and take big tax write offs.

[@Clubtropper1]

Are prices highest in Feb March or April?

[@LogoLowgee]

Just saw a report on zero hedge that tax refunds are down 57%, not sure if that's the number of returns or the amount of the returns.

[@billcorbett1537]

Lumber did the same thing when Home Depot dropped the prices over covid as they have terrible service and couldn't sell. I was selling my lumber at 30% below my cost, move on. Drop the prices. I need 3 more vehicles, but will wait LOL

[@donsisco7118]

I was looking at a 2021 crew Mac Tundra Sr5 with 42 thousand miles on it and 4x2 with light scratches and the want 35 for it, I was told it would go to auction before I would get it for 32k- WHY 🤬

[@MarkSeve]

Need to go back to the Keystone method. The 'charge what the market will bear' method has stopped working. (like I knew it would)

[@justinfowler2857]

Dealers have been living high on the hog since the invention of the automobile. They just figure that they can wait out the market that doesn't want to pay the insane prices.

[@Icanchange1200]

Don’t think for a minute if rates drop that car prices will drop … it’s the opposite. The man will go up greedy dealerships will raise prices again it’s actually not a bad time to get a vehicle now and if the rates go down you refinance.